consumer behavior - chapter 2

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CONSUMER BEHAVIOR

CHAPTER:2 CONSUMER

RESEARCH



Consumer research is the extension of the field of marketing research.

Marketing Research: It is the systematic and objective identification, collection,

analysis, dissemination and use of information for the purpose of improving decision

making related to the identification and solution of problems and opportunities in

marketing.

Positivism: A consumer behavior research approach that regards the consumer

behavior discipline as an applied marketing science. (Quantitative)

Interpretivism: A postmodernist approach to the study of consumer behavior that

focuses on the act of consuming rather than on the act of buying. (Qualitative)



Comparisons between Positivism and Interpretivism:

PURPOSE

METHODOLOGY

ASSUMPTIONS

PositivismPositivism

Prediction of consumer actions


Prediction of consumer actionsInterpretivismInterpretivism

Understanding consumption practices

InterpretivismInterpretivism

Understanding consumption practices


Quantitative


QuantitativeInterpretivismInterpretivism

Qualitative


Qualitative


• Rationality; consumers make decisions

after weighing alternatives• The causes and effects of behavior can

be identified• Individuals are problem solvers• A single reality exists

• Events can be objectively measured


• No single, objective truth• Reality is subjective• Cause and effect cannot be isolated

• Each consumption experience is unique• Researcher/respondent interactions

affect research findings



THE MARKETING/CONSUMER RESEARCH PROCESS:

1.Problem Definition

2.Development of an approach to the problem

3.Research design formulation

4.Field work or Data collection

5.Data preparation and analysis

6.Report preparation and presentation



Classification of Marketing Research:

• Problem Identification Research – Research that is undertaken to identify the

problems that are not necessarily apparent on the surface and yet exist or are likely to arise

in the future. Example: Market Potential Research, Market Share Research, Image

Research etc,.

• Problem-Solving Research – Research undertaken to help solve specific marketing

problems. Example: Segmentation Research, Product Research, Pricing Research etc,.



The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design Qualitative Research

•Method

•Screener questionnaire

•Discussion guide

Design Quantitative Research

• Method

• Sample design

• Data collection instrument

Conduct Research

(Using highly trained

interviewers)

Analyze Data (Subjective)

Prepare Report

Collect Primary Data

(Usually by field staff)

Analyze Data (Objective)

Prepare Report

Exploratory

Study



Problem Definition:A broad statement of the general problem and identification of the specific components of

the marketing research problem.

How is problem defined:

1.Discussion with decision maker

2.Interviews with experts

3.Secondary data analysis

4.Qualitative Research

Environmental Context of the problem

Problem Definition:

1.Management Decision Problem (Should a new product be introduced?)2. Marketing Research Problem (To determine consumer preferences and purchaseintentions for the proposed new product.)



Defining Marketing Research ProblemBroad Statement

To determine the relative strengths and weaknesses of Central, vis-à-vis other major competitors, with respect to factors that influence store patronage.

Specific Components

1. What criteria do customers use when selecting mall?2. How do customers evaluate central and competing malls in terms of thechoice criteria identified in question 1?3. Which malls are patronized when shopping for specific product categories?

Defining Objective of the Research: Defining purposes and objectives helps ensure

an appropriate research design. A statement of objectives helps to define thetype and level of information needed.

Research questions (RQs) are refined statements of the specific components of the problem.

RQ: Do the customers of central exhibit store loyalty?

Hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is apossible answer to the research question.

H1: Customers who are store loyal are less knowledgeable about the shoppingenvironment.



RESEARCH DESIGN:

Exploratory Research: which as its primary objective has the provision of insight into

and comprehension of the problem situation confronting the research.

Conclusive Research: helps in determining, evaluating and selecting the best course of

action to take in a given situation.

Descriptive Research: A type of conclusive research that has as its major objective the

description of something usually market characteristics or functions.

Cross-Sectional Design: A type of research design involving the collection of

information from any given sample of population element only once.

Single Cross-Sectional Design: A cross-sectional design in which one sample of

respondent is drawn from the target population and information is obtained from thissample once.



Multiple Cross-Sectional Design: A cross-sectional design in which there are two or

more samples of respondents and information from each sample is obtained only once.

Cohort analysis: A multiple cross-sectional design consisting of a series of surveys

conducted at appropriate time intervals. The cohort refers to the group of respondents whoexperiences the same event within the same time interval.

Longitudinal design: A type of research design involving a fixed sample of population

element that is measured repeatedly on the same variable. Thus the sample remains same

over time, thus providing a series of picture which viewed together, potray a vivid

illustration of the situation and the changes that are taking place over time.

Panels: The type of research in which the respondent agrees to provide the information

over the period of time.

Causal Research: used to obtain the evidence regarding cause-and-effect relationship.

(Experiment)



Exploratory Research Design:

Primary Data: Data generated by researcher for the specific purpose of

addressing the research problem.

Secondary Data: Data collected for some purpose other than the problem on

hand.

1.Internal – Ready to use, Requires further processing

2.External – Published material, Computerized databases, Syndicated services.



MR Data

Secondary Data Primary Data

Qualitative Quantitative

Descriptive Causal

Experimental Data

Survey Observational & other



Qualitative Research Procedures

Direct (Nondisguised) Direct (Disguised)

Focus Groups Depth InterviewProjective Technique

Association

Technique

Completion

TechniqueConstruction

Technique

Expressive

Technique

Focus Group:Focus Group: A qualitative research method in which eight to ten personsparticipate in an unstructured group interview about a product or service concept.

Depth Interview: A lengthy nonstructured interview between the respondent anda highly trained interviewer, who minimizes his or her own participation in thediscussion after establishing the general subject to be discussed.



Projective Techniques:Projective Techniques: Research procedures designed to identify consumers’subconscious feelings and motivations.

Word Association

In this, respondents are presented with a list of words, one at a time and asked to respond

to each with the first word that comes to mind. The words of interest, called test words,

are interspersed throughout the list which also contains some neutral, or filler words to

disguise the purpose of the study.

Completion Technique: In Sentence/Story completion, respondents are givenincomplete sentences/story and asked to complete them. Generally, they areasked to use the first word or phrase that comes to mind.

Construction Technique: With a picture response, the respondents are askedto describe a series of pictures of ordinary as well as unusual events. Therespondent's interpretation of the pictures gives indications of that individual's

personality.

Metaphor Analysis: Based on belief that metaphors are the most basicmethod of thought and communication.



Zaltman Metaphor Elicitation Technique (ZMET) combines collage research andmetaphor analysis to bring to the surface the mental models and the major themesor constructs that drive consumer thinking and behavior.

In expressive techniques, respondents are presented with a verbal or visualsituation and asked to relate the feelings and attitudes of other people to thesituation. Role Play, third person technique.

Descriptive Research Design

Survey Method: With the help of structured questionnaire (set of formal questionnaire that presents questions in a prearranged order).

Fixed-Alternative Questions: Questionnaire having a set of predetermined answers.



TraditionalTelephone

Computer-AssistedTelephoneInterviewing

MailInterview

MailPanel

In-Home MallIntercept

Computer-AssistedPersonal

Interviewing

E-mail Internet

SurveyMethods

Telephone Personal Mail Electronic



Comparative Advantages

MAIL TELEPHONEPERSONAL

INTERVIEW

ONLINE

Cost Low Moderate High Low

Speed Slow Immediate Slow Fast

Response

rateLow Moderate High

Self-

selectionGeographic

flexibilityExcellent Good Difficult Excellent

Interviewer

bias

N/A Moderate Problematic N/A

Interviewer

supervisionN/A Easy Difficult N/A

Quality of

responseLimited Limited Excellent Excellent



Observation Methods:

Structured (e.g., an auditor performing inventory analysis in a store.)Unstructured (e.g., observing children playing with new toys.)Disguised (mirrors, hidden cameras, or inconspicuous mechanical devices.)Undisguised

Natural (one could observe the behavior of respondents eating fast food inMcDonald.)

Contrived (artificial environment, such as a test kitchen.)

Observation Methods Classified by Mode of Administration:

1. Personal Observation

2. Mechanical Observation (psycho galvanometer, galvanic skin response, voice pitch

analysis and response latency)

3. Audit

4. Content Analysis

5. Trace Analysis

Observational Research:

Helps marketers gain an in-depth understanding of the relationship between people and

products by watching them buying and using products.

Helps researchers gain a better understanding of what the product symbolizes.

Widely used by interpretivist researchers.



Validity:Validity: The degree to which a measurement instrument accurately reflects whatit is designed to measure.

Reliability:Reliability: The degree to which a measurement instrument is consistent in what

it measures.

Attitude Scales: Scaling involves creating a continuum upon which measuredobjects are located.

Likert scales: easy for researchers to prepare and interpret, and simple for

consumers to answer.1 = Agree Strongly

2 = Agree

3 = Neither Agree or Disagree

4 = Disagree

5 = Disagree Strongly

Semantic differential scales: relatively easy to construct and administer.

1) Rugged :---:---:---:---:---:---:---: Delicate

2) Excitable :---:---:---:---:---:---:---: Calm

Rank-order scales: subjects rank items in order of preference in terms of somecriteria.



ScaleNominal Numbers

Assigned

to Runners

Ordinal Rank Order

of Winners

Interval PerformanceRating on a

0 to 10 Scale

Ratio Time toFinish, in

Seconds

7 38

Thirdplace

Secondplace

Firstplace

Finish

Finish

8.2 9.1 9.6

15.2 14.1 13.4



Nominal Ordinal RatioScale Scale Scale

Preference $ spent last 3months No. Store

1. Lord & Taylor 2. Macy’s3. Kmart4. Rich’s

5. J.C. Penney6. Neiman Marcus7. Target8. Saks Fifth Avenue9. Sears10.Wal-Mart

IntervalScale

Preference Ratings

1-7 Rankings 11-17

7 79 5 15 0

2 25 7 17 200

8 82 4 14 03 30 6 16 100

1 10 7 17 250

5 53 5 15 35

9 95 4 14 0

6 61 5 15 100

4 45 6 16 0

10 115 2 12 10



Questionnaire: A questionnaire is a formalized set of questions for obtaining information from respondents.

It must translate the information needed into a set of specific questions

that the respondents can and will answer. A questionnaire must uplift, motivate, and encourage the respondent tobecome involved in the interview, to cooperate, and to complete theinterview. A questionnaire should minimize response error.



Specify the Information Needed

Design the Question to Overcome the Respondent’s Inability and Unwillingness to

Answer

Determine the Content of Individual Questions

Decide the Question Structure

Determine the Question Wording

Arrange the Questions in Proper Order

Reproduce the Questionnaire

Specify the Type of Interviewing Method

Identify the Form and Layout

Eliminate Bugs by Pre-testing

Questionnaire Design Process



Customer Satisfaction Measurement:

1.Customer Satisfaction Surveys2.Gap Analysis of Expectations versus Experience

3.Mystery Shoppers4.Critical Incident Technique5.Customer Complaint Analysis6.Analysis of Customer Defections

Sampling and Data Collection:

Whom to survey (the sampling unit)

How many to survey (the sample size)

How to select them (the sampling procedure/technique)



Probability Sampling Design:

Simple random

sample

Every member of the population has a known and

equal chance of being selected.

Systematic

random sample

A member of the population is selected at random

and then every “nth” person is selected.

Cluster (area)sample

The population is divided into mutually exclusivegroups (such as blocks), and the researcher draws

a sample of the groups to interview.

Stratified

random sampleThe population is divided into mutually exclusive

groups (such as age groups), and random samples

are drawn from each group.



Nonprobability Sampling Designs

consumer behavior - chapter 2

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